The Heart of England Co-operative Society is celebrating a solid performance for the 18th consecutive year - despite tough conditions.

The Society, which operates a network of 57 stores across the region, achieved gross sales of £95.4million - an increase of 2.3 per cent and an all-time record for the business.

Its net worth now stands at £41.6million - rising from £40.1million the previous year and profits equate to 6.1 per cent of turnover.

The Society has also invested a staggering £5.1million in capital projects throughout 2013 and figures show members benefited from £2million of discounts over the past 12 months.

Ali Kurji, chief executive of the Heart of England Co-operative Society, said he was delighted to have continued building on the performance of previous years.

But he added it had been one of the most challenging and difficult years in living history, with a depressed economy, austerity measures and increased competition all compounding the modern-day struggles faced by the retail market.

He added: “Every year sees our retail climate getting tougher and tougher so I am delighted our Society managed to perform satisfactorily, with the food and funeral divisions performing well despite all the challenges.

“I believe this success is down to the policies implemented in recent years and which we continue to adopt to this day. Although it is getting tougher I am delighted our business continues to operate with no borrowings. Indeed we have invested more than £5million this year and I believe this level of investment has helped us reap dividends.”

The past 12 months saw a 3.5 per cent increase in like-for-like sales within the Society’s food division.

Mr Kurji says this is in part due to the Society’s continued investment programme which has seen 30 out of 34 food stores rebranded and refurbished. The funeral division also expanded in 2013, with a new site in Hinckley after the Society acquired the family firm AJ Murray, which has become the 11th funeral home in the network.

Other projects included replacing two ceremonial fleets in Nuneaton and Rugby and the Society is now looking to relocate its Nuneaton funeral home and refurbish its home in Rugby. The non-food division remains the most challenging aspect of the business, claimed Mr Kurji, with retailers and the multi-nationals continuing to increase their market share. However, the Society unveiled its new-look non-food store at Atherstone in November, following a £423,000 investment.

The travel division also faces challenges, but bosses say they received positive feedback after refurbishing and rebranding the base in Bedworth.

Mr Kurji added: “2013 was an extremely tough year for every one. Although we achieved very satisfactory results which by no means had been easy.

“I am expecting the next 12 months also to be tough, but with the continued efforts of every member of staff, I know our members and customers will benefit from the best experience which is synonymous with the Heart of England Co-operative Society name.”